3 April 2014

Oil Business

March Drilling Report

Drillsearch Energy Limited

ABN 73 006 474 844

Telephone +61 2 9249 9600

Facsimile +61 2 9249 9630 admin@drillsearch.com.au

www.drillsearch.com.au Level 16, 55 Clarence Street Sydney NSW 2000

Western Flank Oil Fairway PEL 91

In PEL 91 (Drillsearch 60%, Beach operator and
40%), an oil discovery was made with the exploration
well Stunsail-1 which is located 16km northeast of the Bauer oil field. The well exceeded expectations by encountering a thicker column and multiple hydrocarbon bearing zones in the McKinlay Formation, Namur Sandstone and Birkhead Formation. The well was cased and suspended as a future oil producer. For more detailed information on the Stunsail-1 oil discovery please refer to the ASX Announcement released on Wednesday 2

April 2014.

Eastern Margin Oil Fairway ATP 299P

Drilling has finished on the three-well development campaign across the Tintaburra and Toobunyah oil fields with Tintaburra-8, Toobunyah-10 and Toobunyah-11 all cased and suspended. The aim of the campaign is to develop the 2P Hutton Sandstone reserves and to progress towards a suitable in-fill field development plan.

Unconventional Business


Central Unconventional Fairway ATP 940P

Drillsearch is continuing to drill the Charal-1 well through the target Permian formations. A conventional core was cut in the Epsilon Formation and intermediate wireline logging was run to the base of the Murteree Shale. The well is currently being drilled ahead through the Patchawarra Formation.

Monthly Drilling Summary

Oil Wells

Participants

Progress & Summary

Primary Target

Bauer - 13

DLS 60% BPT* 40%

Spud Date: Wednes day, 19 February 2014

Rig Releas e: Sunday, 2 March 2014

Depth: 1, 723 m Operation: C & S Progres s : 1, 723 m

Nam ur Sands tone

PEL 91

Oil Bus ines s

Wes tern Flank Oil

C/E Bas in, SA

DLS 60% BPT* 40%

Spud Date: Wednes day, 19 February 2014

Rig Releas e: Sunday, 2 March 2014

Depth: 1, 723 m Operation: C & S Progres s : 1, 723 m

Nam ur Sands tone

Toobunyah 10

DLS 40% STO* 60%

Spud Date: Sunday, 23 February 2014

Rig Releas e: Saturday, 8 March 2014

Depth: 1, 158 m (TD) Operation: C & S

Progres s : 1, 158 m (TD)

Hutton Form ation

PL 29

Oil Bus ines s Eas tern Margin C/E Bas in, QLD

DLS 40% STO* 60%

Spud Date: Sunday, 23 February 2014

Rig Releas e: Saturday, 8 March 2014

Depth: 1, 158 m (TD) Operation: C & S

Progres s : 1, 158 m (TD)

Hutton Form ation

Toobunyah 11

DLS 40% STO* 60%

Spud Date: Monday, 10 March 2014

Rig Releas e: Wednes day, 19 March 2014

Depth: 1, 145 m (TD) Operation: C & S

Progres s : 1, 145 m (TD)

Hutton Form ation

PL 29

Oil Bus ines s Eas tern Margin C/E Bas in, QLD

DLS 40% STO* 60%

Spud Date: Monday, 10 March 2014

Rig Releas e: Wednes day, 19 March 2014

Depth: 1, 145 m (TD) Operation: C & S

Progres s : 1, 145 m (TD)

Hutton Form ation

Stunsail - 1

DLS 60% BPT* 40%

Spud Date: Saturday, 8 March 2014

Rig Releas e: Sunday, 30 March 2014

Depth: 2, 019 m (TD) Operation: C & S

Progres s : 2, 019 m (TD)

Nam ur Sands tone

PEL 91

Oil Bus ines s

Wes tern Flank Oil

C/E Bas in, SA

DLS 60% BPT* 40%

Spud Date: Saturday, 8 March 2014

Rig Releas e: Sunday, 30 March 2014

Depth: 2, 019 m (TD) Operation: C & S

Progres s : 2, 019 m (TD)

Nam ur Sands tone

Unconventional Wells

Participants

Progress & Summary

Primary Target

Charal - 1

DLS* 40% QGC 60%

Re-entered: Monday, 24 February 2014

Rig Releas e: Tues day, 22 April 2014 (Propos ed) Depth: 3, 891 m (Propos ed TD)

Operation: Drilling Operations

Progres s : 3, 287 m

Ros eneath / Murteree Shale

ATP 940P

Unconventional Bus ines s Central Unconventional C/E Bas in, QLD

DLS* 40% QGC 60%

Re-entered: Monday, 24 February 2014

Rig Releas e: Tues day, 22 April 2014 (Propos ed) Depth: 3, 891 m (Propos ed TD)

Operation: Drilling Operations

Progres s : 3, 287 m

Ros eneath / Murteree Shale

For further information please contact:

Brad Lingo

Managing Director

Dudley White

GM - Corporate Communications

+61 2 9249 9600

admin@drillsearch.com.au

+61 2 9249 9669

dudley.white@drillsearch.com.au

About Drillsearch Energy Limited (ASX: DLS), which listed on ASX in 1987, explores and develops conventional and unconventional oil and gas projects. Drillsearch has a strategic spread of petroleum exploration and production acreage in Australia's most prolific onshore oil and gas province, the Cooper-Eromanga Basins in South Australia and Queensland. The Company's focus is on 'brownfields' exploration where geological risk is reduced and there is access to existing infrastructure, ensuring that any discoveries can be brought into production.
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